Explain how to estimate downside risk for a company with consistent growth.

What will be an ideal response?


For companies with consistent growth, compute the low price per share in the next five years by multiplying the average low P/E or adjusted average low P/E by the estimated low earnings per share. The most recent year's earnings are used for the low earnings per share estimate. This EPS should be a low figure relative to the projected EPS over the next 5 years. Investors will need to apply their judgment to selecting the representative low P/E ratio.

Business

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When assessing the current situation in the first step of a marketing plan, it is recommended that one ________

A) avoids making assumptions of any kind B) eliminates areas that lack factual data from the purview of the plan C) utilizes only concrete facts about the future projections and performance gaps D) generates estimates based on knowledge and experience to be modified in the future E) substitutes the data of current performance by that of the projected performance in the plan

Business

Which of the following best completes the sentence, ‘Without ______ messages, brands minimize the amplification effects they could generate if their audiences found the FGC worth sharing with others.’?

a. Informative. b. Viral. c. Persuasive. d. Interactive. e. None of these

Business

A newly opened law firm in Kirkland decides to create a small website that provides a brief introduction of the firm, its mission, the contact information and address of the firm, and a client list

Which of the following information architectures would be most suitable for its website?A) flat website architecture B) hierarchical website architecture C) multidimensional website architecture D) sequential architecture

Business

Britney is beneficiary of a $150,000 insurance policy on her father's life. Upon his death, she may elect to receive the proceeds in five yearly installments of $32,000 or may take the $150,000 lump sum. She elects to take the lump sum payment. What are the tax consequences in year one?

A) All $32,000 each year is taxable. B) $10,000 interest is taxable in the first year. C) There is no taxable income. D) The lump sum payment is taxable.

Business